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Abstract

Tough economic times, stiff competition, globalization among other macroeconomic
factors have led companies to adopt strategies that would enable them to remain
competitive in whichever industry they are operating in. One of these strategies that is
currently gaining currency in Kenya and globally among many large organizations is
the Cost leadership strategy. Companies are adopting stringent measures to curb costs
and lower prices while at the same time striving to provide value to customers so as to
enhance their competitiveness in the market. The study focused on the
telecommunications industry in Kenya, an industry that has seen brutal price wars in
the last few years between the main players which are Safaricom, Airtel, Telecom's
Orange and Essar's Yu. The study intended to establish how variables such as low
pricing, economies of scale, controlled costs and resources contributed to the
enhancement of competitive advantage. The study adopted the descriptive research
design that focused on the relationship between strategies the organizations are
employing to win more customers and the resultant competitiveness they have
achieved so far.
Stratified random sampling technique was used to select sample population. Eighty
people were selected from a population of four hundred and three employees of
industry players Safaricom, Bharti Airtel, Orange and Yu mobile. The respondents
were selected from strategic management, sales and marketing management and
representatives and finance and human resources management. Data was collected
from both primary and secondary sources. Primary data was collected using personal
interview and questionnaires developed by the researcher and administered with the
help of trained research assistants while secondary data was collected through review
of relevant literature. Data was analyzed using Microsoft excel, descriptive analysis
and result presented in pie charts, graphs and tables. The results will be presented to
management of these organizations for considerations on how to enhance their
competitive advantage in the industry.